Federal Signal Corporation (FSS) vs Lindsay Corporation (LNN)

Federal Signal Corporation and Lindsay Corporation are both Farm & Heavy Construction Machinery companies. Federal Signal Corporation is the larger, with a market value of $6.9B against $1.1B — 6.0× the size. Lindsay Corporation trades at the lower P/E: 21.8× against 24.5×. Federal Signal Corporation grew revenue faster over the last twelve months: 24.0% against −7.37%. Federal Signal Corporation has the higher net margin (11.7% vs 8.79%) and the higher return on invested capital (13.0% vs 8.50%). Both pay a dividend; Lindsay Corporation yields more (1.09% vs 0.50%). Across the 23 metrics below, Federal Signal Corporation leads on 12 and Lindsay Corporation on 11.

Valuation

Metric FSS LNN Farm & Heavy Construction Machinery median
P/E 24.47 21.80 23.38
P/S 2.85 1.87 0.81
P/B 4.64 2.36 1.43
Price to free cash flow 20.60 26.20 25.31
EV/EBITDA 15.19 13.42 12.13
EV/Sales 3.01 1.81 1.20
Earnings yield 4.09% 4.59% 2.73%
Free cash flow yield 4.85% 3.82% 3.02%

Profitability

Metric FSS LNN Farm & Heavy Construction Machinery median
Gross margin 29.17% 29.46% 24.21%
Operating margin 16.15% 9.95% 4.47%
Net margin 11.66% 8.79% 1.49%
Free cash flow margin 13.86% 7.15% 2.15%
Return on equity 20.61% 10.74% 4.16%
Return on assets 13.10% 6.64% 1.45%
Return on invested capital 13.02% 8.50% 3.36%

Growth

Metric FSS LNN Farm & Heavy Construction Machinery median
Revenue growth (TTM) 23.97% (7.37%) 2.18%
EPS growth (last fiscal year) 14.57% 12.81% —
Revenue growth, 5-year CAGR 14.03% 7.34% 7.34%
Net income growth, 5-year CAGR 20.72% 13.90% 0.00%

Health

Metric FSS LNN Farm & Heavy Construction Machinery median
Debt to equity 0.30 0.23 0.67
Current ratio 2.74 2.93 1.98
Net debt to EBITDA 1.19 (1.24) 1.12

Dividend

Metric FSS LNN Farm & Heavy Construction Machinery median
Dividend yield 0.50% 1.09% 1.45%
Payout ratio 0.17 0.21 0.08

Size

Metric FSS LNN Farm & Heavy Construction Machinery median
Market cap 6.88b 1.14b 772.81m

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